11-09-2021, 01:05 PM
EDU Closes 1,500 Centers; Pivots to Agri E-Commerce
<!-- SC_OFF --><div class="md"><blockquote> <p><a href="https://www.scmp.com/tech/policy/article/3155300/chinas-private-tutoring-guru-closes-1500-new-oriental-schools-amid?module=lead_hero_story&pgtype=homepage">China’s private tutoring guru closes 1,500 of New Oriental schools amid Beijing crackdown</a> </p> <p>Yu Minhong, founder of New Oriental, announced that the company will start selling farm produce after closing its after-school tutoring business</p> </blockquote> <p>Personally, I think this is a great pivot. EDU will still operate is notn-compulsory centers focusing on adult language classes and high school. It's pivot towards Agri E-Commerce is a bit odd, but considering this perfectly fits in with 'Common Prosperity' I assume it's going to get lots of preferential treatment. Not only that but CEO is getting a lot of praise for not stiffing customers and for being a model CEO. Basically, the pivot is exactly the kind that the Chinese Government would like to see. It's still a long-term play - nothing is going to happen overnight - but considering the brand name and liquidity and capital that EDU has they can definitely weather the storm and transition. Not to mention lots of government support for playing ball.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/XiKeqiang"> /u/XiKeqiang </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/qpdgsl/edu_closes_1500_centers_pivots_to_agri_ecommerce/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/qpdgsl/edu_closes_1500_centers_pivots_to_agri_ecommerce/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><blockquote> <p><a href="https://www.scmp.com/tech/policy/article/3155300/chinas-private-tutoring-guru-closes-1500-new-oriental-schools-amid?module=lead_hero_story&pgtype=homepage">China’s private tutoring guru closes 1,500 of New Oriental schools amid Beijing crackdown</a> </p> <p>Yu Minhong, founder of New Oriental, announced that the company will start selling farm produce after closing its after-school tutoring business</p> </blockquote> <p>Personally, I think this is a great pivot. EDU will still operate is notn-compulsory centers focusing on adult language classes and high school. It's pivot towards Agri E-Commerce is a bit odd, but considering this perfectly fits in with 'Common Prosperity' I assume it's going to get lots of preferential treatment. Not only that but CEO is getting a lot of praise for not stiffing customers and for being a model CEO. Basically, the pivot is exactly the kind that the Chinese Government would like to see. It's still a long-term play - nothing is going to happen overnight - but considering the brand name and liquidity and capital that EDU has they can definitely weather the storm and transition. Not to mention lots of government support for playing ball.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/XiKeqiang"> /u/XiKeqiang </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/qpdgsl/edu_closes_1500_centers_pivots_to_agri_ecommerce/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/qpdgsl/edu_closes_1500_centers_pivots_to_agri_ecommerce/">[comments]</a></span>Kind Regards R